In a recent episode of “The Rundown with Ramon,” host Ramon Ray sat down with Darlene Goins, Head of Philanthropy and Community Impact at Wells Fargo and President of the Wells Fargo Foundation. Their discussion shed light on how the banking giant is making a significant impact on small businesses, particularly through its Open for Business Fund.

Listen to the podcast here.

Meet Darlene Goins: The Woman Behind Wells Fargo’s Philanthropy

Darlene Goins leads Wells Fargo’s efforts in strengthening historically marginalized communities by investing in economic advancement and building generational wealth. Her role puts her at the forefront of the bank’s initiatives to support small businesses and foster community development.

The Open for Business Fund: A Response to the Pandemic

Origins and Purpose

The Open for Business Fund was created in 2020 as a response to the COVID-19 pandemic. Wells Fargo recognized the struggles faced by millions of small businesses, particularly those that are integral to local communities, such as hair salons, nail salons, restaurants, and childcare centers.

How It Works

The fund operates by:

1. Distributing approximately $420 million to Community Development Financial Institutions (CDFIs) and other community organizations.
2. Providing flexible capital to these organizations, which in turn support small businesses.
3. Offering services ranging from grants and low-cost loans to technical assistance and personalized guidance.

Impact and Reach

Since its inception, the Open for Business Fund has:

• Supported over 336,000 small businesses
• Helped create or preserve more than 461,000 jobs
• Focused on historically underserved communities:
• 53% of businesses served were women-owned
• 79% were racially and ethnically diverse
• 72% identified as low and moderate income

Beyond Traditional Banking: The Power of Philanthropy

Goins emphasized the importance of strengthening the overall ecosystem for small businesses. This approach goes beyond traditional banking services and includes:

1. Providing micro-loans for businesses just starting out
2. Offering technical assistance and personalized guidance
3. Creating new products and increasing capacity to serve small businesses
4. Busting myths about investing in lower-income business owners

Leveraging Impact: From Millions to Billions

One of the most impressive aspects of the Open for Business Fund is its ability to leverage initial investments:

• The initial $420 million investment grew to $2.1 billion
• This growth allowed organizations to expand their credit offerings and accept more businesses that might have been historically declined for lending products

Advice for Small Business Owners

Goins offered valuable advice for both new and established small business owners:

For New Entrepreneurs:

1. Tap into the small business ecosystem of support (e.g., local Urban League)
2. Seek personalized technical expertise
3. Look for affordable capital options beyond self-funding or family/friends

For Established Businesses:

1. Focus on asset ownership
2. Invest in commercial property, equipment, or technology infrastructure to sustain and scale the business

The Ongoing Impact of the Open for Business Fund

The third round of the Open for Business Fund is still ongoing, focusing on asset ownership. This demonstrates Wells Fargo’s commitment to long-term support for small businesses.

Conclusion: Philanthropy as a Catalyst for Lasting Impact

Darlene Goins concluded the interview by emphasizing that philanthropy can be a powerful catalyst for lasting impact, innovation, and job creation. The success of the Open for Business Fund serves as a testament to how financial institutions can play a crucial role in community development and economic growth.

Through initiatives like this, Wells Fargo is not just providing financial services but actively participating in building stronger, more resilient communities. As small businesses continue to face challenges and opportunities in a post-pandemic world, the support of institutions like Wells Fargo will be crucial in ensuring their success and the overall health of local economies.

Additional resources:

• How Grace Easevoli Built a Thriving eBay Business from $40